Revenues grew 174.0% to $40.2 million from $14.7 million in the first quarter of 2013

Electric Vehicle ("EV") products revenues increased significantly by 384.5% to $8.4 million from $1.7 million in the first quarter of 2013

Revenue for EV Parts including battery packs was $25.0 million in the first quarter of 2014. The Company started this business in the first quarter of 2014.

All-terrain Vehicle ("ATV") sales grew slightly to $3.3 million from $2.5 million in the first quarter of 2013

Gross profit grew 44.1% to $4.9 million from $3.4 million in the first quarter of 2013

The income for the JV Company (Kandi Electric Vehicles Group Co., Ltd., a joint venture company established by the Company's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. with Shanghai Maple Guorun Automobile Co., Ltd. ("Shanghai Maple"), a 99%-owned subsidiary of Geely Automobile Holdings Ltd.) was $1.7 million and the profit for Kandi was $0.8 million in the first quarter of 2014

GAAP net loss for the first quarter was $14.1 million compared to a net income of $2.2 million in the same period last year due to changes relating to the fair value of financial derivatives resulted from the relatively high stock price during the first quarter period, stock awards to management, and increases in our general & administrative expenses

Non-GAAP net income*, excluding the effects of the stock award expense and the change of the fair value of financial derivatives, was $1.6 million, an increase of 30.4% compared with $1.3 million in the first quarter of 2013

Cash, cash equivalents totaled $20.5 million for the first quarter, a 60.2% increase from $12.8 million at the end of 2013

*Non-GAAP net income in this context means the net income excluding option-related expenses, stock award expenses, and the effects caused by the change of fair value of financial derivatives. We furnish non-GAAP information because we believe it allows our investors to obtain a clearer understanding of our operations.

Mr. Xiaoming Hu, Chairman and CEO of the Company commented, "During the first quarter, Kandi has once again experienced the significant growth in EV related business sales. We are satisfied with the financial results we have achieved in the slowest quarter of the year. The Public EV Sharing Project in Hangzhou is making modest progress and several other cities have approached us to discuss implementation of the project in their cities. We are very confident about the continuous high growth of our EV business. Through our partnership with Geely and our advanced production capabilities, we soon expect to become the leading fully integrated provider of pure EVs in China."

KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

Three Months Ended

March 31, 2014

March 31, 2013

REVENUES, NET

$ 40,171,304

$ 14,662,521

COST OF GOODS SOLD

(35,310,895)

(11,290,490)

GROSS PROFIT

4,860,409

3,372,031

Research and development

(1,172,257)

(689,665)

Selling and marketing

(71,257)

(89,614)

General and administrative

(6,470,766)

(692,964)

(LOSS) INCOME FROM CONTINUING OPERATIONS

(2,853,871)

1,899,788

Interest (expense) income, net

(471,180)

(670,208)

Change in fair value of financial instruments

(12,314,171)

990,395

Government grants

--

--

Share of (loss) in associated companies

(15,805)

(14,023)

Share of profit after tax of JV

1,728,356

--

Other income, net

59,580

122,365

(LOSS) INCOME BEFORE INCOME TAXES

(13,867,091)

2,328,317

INCOME TAX EXPENSE

(219,069)

(91,444)

NET (LOSS) INCOME

(14,086,160)

2,236,873

OTHER COMPREHENSIVE INCOME

Foreign currency translation

(1,211,116)

584,915

COMPREHENSIVE INCOME (LOSS)

$ (15,297,276)

$ 2,821,788

WEIGHTED AVERAGE SHARES OUTSTANDING BASIC

39,597,785

32,298,832

WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED

39,597,785

32,539,339

NET (LOSS) INCOME PER SHARE, BASIC

$ (0.36)

$ 0.07

NET (LOSS) INCOME PER SHARE, DILUTED

$ (0.36)

$ 0.07

KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

March 31,

December 31,

2014

2013

(Unaudited)

CURRENT ASSETS

Cash and cash equivalents

$ 20,498,275

$ 12,762,369

Restricted cash

--

1,636

Accounts receivable

22,674,057

31,370,862

Inventories (net of provision for slow moving inventory of $349,850 and $352,734 as of March 31, 2014 and December 31, 2013, respectively

Kandi Technologies Group, Inc. (Nasdaq:KNDI), headquartered in Jinhua, Zhejiang Province, is engaged in the research and development, manufacturing and sales of various vehicles. Kandi has established itself as one of the world's largest manufacturers of pure electric vehicles (EVs), Go-Kart vehicles, and tricycle and utility vehicles (UTVs), among others. More information can be viewed at its corporate website is http://www.kandivehicle.com. Kandi routinely posts important information on its website.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.